M/S Bagadia Brothers vs. Additional Commissioner Of Commercial Taxes Zone - Ii

STA/4/2018HC KarnatakaGSTCNR KAHC01044650201829 January 2020Bench: ARAVIND KUMAR,E.S.INDIRESH20 pages

For Respondent: SRI.VIKRAM A.HUILGOL, ADVOCATE

AI SummaryDismissed

Held

The Court held that the Deputy Commissioner was authorized to commence re-assessment proceedings and that the burden of proving the correctness of input tax credit lies with the dealer claiming it. The appellant failed to discharge this burden.

Facts

The appellant claimed input tax credit on purchases from M/s. Tradex Metal Corporation. The Deputy Commissioner disallowed this credit, finding that M/s. Tradex Metal Corporation was a bill trader issuing fake bills. The first appellate authority allowed the appeal, but the Additional Commissioner (Revisional Authority) set aside that order, restoring the disallowance.

Key Issues

Whether the Deputy Commissioner had the authority to initiate re-assessment proceedings and whether the appellant discharged the burden of proof for claiming input tax credit.

Sections Cited

Section 39(1), Section 64(1), Section 70, Section 2(24), Section 62(6)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF JANUARY, 2020 PRESENT THE HON’BLE MR. JUSTICE ARAVIND KUMAR AND THE HON’BLE MR. JUSTICE E.S.INDIRESH S.T.A. NO.4 OF 2018 BETWEEN: M/S.BAGADIA BROTHERS NO.1076, II FLOOR, 18TH MAIN, 16TH CROSS, 5TH BLOCK, RAJAJINAGAR, BENGALURU – 560 010. ... APPELLANT (BY SRI.A.SATYANARAYAN, ADVOCATE) AND: ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES, ZONE-II, VTK-1, GANDHINAGAR, BENGALURU – 09. ... RESPONDENT (BY SRI.VIKRAM A.HUILGOL, ADVOCATE) 2 THIS STA FILED UNDER SECTION 66(1) OF THE KARNATAKA VALUE ADDED TAX ACT, 2003 AGAINST THE

DATED 09.02.2018 PASSED IN NO.ADCOM/ZONE-II/APP-3/SMR/CR-18/ 2017-18 ON THE FILE OF THE ADDL. COMMISSIONER OF COMMERCIAL TAXES, ZONE – II, 6TH FLOOR, VTK-1, GANDHINAGAR, BENGALURU SETTING ASIDE THE ORDER BEARING NO.VAT.AP.1284 TO 1294/15-16 DATED 24.07.2017 PASSED BY JOINT COMMISSIONER OF COMMERCIAL TAXES, (APPEALS)- 3, BENGALURU – 27 FOR THE TAX PERIO

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Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.